You are preparing procurement documents for the building of a community center. There will be government standards, guidelines, and possibly regulations involved. You need to structure the procurement documentation in order to get proposals from qualified prospective sellers interested in doing business on a particular project. All the following statements concerning procurement documents are incorrect except:

You are advising another project manager who is starting his first agile project. In addition to the development team, he would like to use subcontractors for some parts of the work, but he isn't sure how to define the acceptance criteria. Which statement would you advise him to include in the contracts?

Your organization is transitioning to an agile approach. You have been asked to review the company's existing standard procurement contracts and revise them as needed to reflect the new project approach. What is one of the key adjustments you want to make?

A project manager for the seller is told by her management that the project team should do whatever possible to be awarded incentive money. The primary objective of incentive clauses in a contract is to:

All the following statements about change control are incorrect except:

A routine audit of a cost-reimbursable (CR) contract determines that overcharges are being made. If the contract does not specify corrective action, the buyer should:

Buyers and sellers have many common goals, but some goals of the buyer will not benefit the seller. Likewise, the seller will sometimes have goals that conflict with those of the buyer. These could negatively affect the project if contracts are not negotiated appropriately. The primary objective of contract negotiations is to:

A seller is working on a cost-reimbursable (CR) contract when the buyer decides he would like to expand the scope of services and change to a fixed-price (FP) contract. All the following are the seller's options except:

You are working to plan procurements for a project that will develop a prototype cruise ship. The prototype will be tested, perfected, and then used to create a small fleet. In addition to creating procurement management plan, you must put together bid documents describing the project and the criteria that will be used to select a seller. Which of the following will occur during this project's Plan Procurement Management process?

Which of the following is the best thing for a project manager to do in the Conduct Procurements process?

The sponsor is worried about the seller deriving extra profit on the cost plus fixed fee (CPFF) contract. Each month he requires the project manager to submit CPI calculations and an analysis of the cost to complete. The project manager explains to the sponsor that extra profits should not be a worry on this project because:

Your CFO has decided to switch to graduated fixed-price contracts for change-driven initiatives. On your projects, you've been working with the same subcontractor for five years under a standard fixed-price contract. The sales rep tells you they are concerned about this contract change and wondering if they can afford to accept any more work from you. How do you explain the change to her?

You are considering using a fixed-price (FP) contract because you have well-defined requirements for your construction project. With your requirements and your understanding of the seller's competition, you are confident you will be able to establish a complete statement of work. The fee or profit in this type of contract is:

As part of closing a cost-reimbursable contract on a project, what must the buyer remember to do?

The sponsor and the project manager are discussing what type of contract the project manager plans to use on the project. The sponsor points out that the performing organization paid a design team a lot of money to come up with the design. The project manager is concerned that the risk for the buyer be as small as possible, and recommends a fixed-price contract. An advantage of a fixed-price contract for the buyer is:

As the buyer in an agile contracting environment, what key consideration should you bear in mind when negotiating procurement contracts?

You are trying to make sure all records from the procurement are documented and indexed. Which of the following do you not have to worry about?

A project has a tight budget when you begin negotiating with a seller for a piece of equipment. The seller has told you the equipment price is fixed. Your manager has told you to negotiate the cost with the seller. Your assessment is that the piece of equipment has been offered at inflated pricing. What is your best course of action?

Which of the following is an advantage of centralized contracting?

Your company has an emergency and needs contracted work done as soon as possible. Under these circumstances, which of the following would be the most helpful to add to the contract?

You are the project manager of a relatively small project to build out improvements to a small shop in a pedestrian mall. The project is using a time and material contract, and you know you must be involved in negotiations. Which of the following is an advantage of a time and material contract?

The project team is assessing the responses of prospective sellers who have submitted proposals. One team member argues for a certain seller while another team member wants the project to be awarded to a different seller. What part of the procurement process is the team in?

A project manager is in the middle of creating a request for proposal (RFP). What part of the procurement process is he in?

Your program manager has advised that you need to protect the organization from financial risk. In planning a new project, you realize there is limited scope definition related to the work needed to fulfill the contract. What is the best type of contract to choose?

Negotiations between two parties are becoming complex, so Party A makes some notes that both parties sign. However, when the work is being done, Party B claims they are not required to provide an item they both agreed to during negotiations, because it was not included in the subsequent contract. In this case, Party B is:

Your project has just been fast tracked, and you are looking to quickly bring in a subcontractor to complete networking. There is no time to issue a request for proposal (RFP), so you choose to use a company you have used many times before for software development. A primary concern in this situation is:

The project manager, the procurement manager, and the project sponsor are discussing the project costs and whether it is better to have their own company do some of the project work or hire another company to do all the work. Generally, it would be better for the organization to do the work internally if:

After much hard work, the procurement statement of work for the project is completed. However, even after gaining agreement that the procurement statement of work is complete, the project manager is unsure of whether it actually addresses all the buyer's needs. The project manager is about to attend the bidder conference. He asks you for advice on what to do during the session. Which of the following is the best advice you can give him?

A seller is awarded a contract to build a pipeline. The contract terms and conditions require a work plan to be issued for the buyer's approval prior to commencing work, but the seller fails to provide one. Which of the following is the best thing for the buyer's project manager to do?

Procurement closure is different from the Close Project or Phase process in that procurement closure:

You have just started work on a procurement when management decides to terminate the contract. What should you do?

The project team is considering the prospective sellers who have submitted proposals. One team member supports a certain seller while another team member wants the project to be awarded to a different seller. The project manager should remind the team that the best thing to focus on in order to make a selection is the:

The $800,000 contract specifies that the seller will bill the buyer at $10,000 per month. However, the seller is able to complete the project work faster than planned. Therefore, they bill the buyer for $15,000 for the work performed in the past month. The buyer should:

You are the project manager at a software development company, leading a project to develop an innovative application for a client. The project has followed a strict software engineering process. The requirements have been specified in detail, resulting in extensive functional and technical specification documents. Your project team member delivers an interim project deliverable to the buyer. However, the buyer refuses the deliverable, stating it does not meet the requirement on page 300 of the technical specifications. You review the document and find that you agree. What is the best thing to do?

Your organization has recently been informed that several of the regulations related to how your products are manufactured will change in six months. In planning for work to change certain design and production processes, you determine you will need to work with several external organizations to do the work. Which type of contract do you not want to use if you do not have enough risk to help audit invoices?

A new project manager is about to begin creating the procurement statement of work. One stakeholder wants to add many items to the procurement statement of work. Another stakeholder only wants to describe the functional requirements. The project is important for the project manager's company, but a seller will do the work. How would you advise the project manager?